New gas and hydrogen agreement reached by SONATRACH and Eni

Source: press release, 26 May 2022

photo: Eni
photo: Eni

The Chairman of SONATRACH, Toufik Hakkar, and Eni CEO, Claudio Descalzi, have signed a memorandum of understanding (MoU) in Rome aimed at accelerating the development of gas fields in Algeria and decarbonisation via green hydrogen. The signing ceremony was witnessed by the President of the People’s Democratic Republic of Algeria Abdelmadjid Tebboune and the Italian Prime Minister Mario Draghi during a state visit to Rome. The MoU represents a further step in strengthening energy cooperation between Italy and Algeria and is in line with Eni’s strategy of diversifying energy sources with a focus on decarbonisation.

In more detail, the MoU will allow SONATRACH and Eni to evaluate the gas potential and opportunities for accelerated development at specific fields already discovered by SONATRACH in Algeria. The gas production volumes expected from the areas covered by the agreement is equal to approximately 3 billion cubic metres per year and will contribute to increasing the export capacity of Algeria to Italy through the Transmed pipeline.

The Memorandum also covers the technical and economic evaluation for a green hydrogen pilot project in Bir Rebaa North (BRN) in the Algerian desert, with the goal of supporting the decarbonisation of the BRN gas plant operated by JV SONATRACH-Eni GSE.

Eni is the main international energy company operating in Algeria, where it has been present since 1981.